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<br />;" '. coverage of this policy, the Company shall promptly investi-
<br />gate such charge to determine whether the lien, encum-
<br />brance, adverse claim or defect is valid and not barred by law
<br />or statute, The Company shall notify the Insured in writing,
<br />within a reasonable time, of its determination as to the validity
<br />or invalidity of the Insured's claim or charge under the policy,
<br />If the Company concludes that the lien, encumbrance, ad-
<br />verse claim or defect is not covered by this policy, or was
<br />otherwise addressed in the closing of the transaction in
<br />connection with which this pOlicy was issued, the Company
<br />shall specifically advise the Insured of the reasons for its
<br />determination, If the Company concludes that the lien, encum-
<br />brance, adverse claim or defect is valid, the Company shall
<br />take one of the following actions: (1) institute the necessary
<br />proceedings to clear the lien, encumbrance, adverse claim or
<br />defect from the title to the estate as insured; (2) indemnify the
<br />Insured as provided in this policy; (3) upon payment of ap-
<br />propriate premium and charges therefor, issue to the current
<br />Insured or to a subsequent owner, mortgagee or holder of the
<br />estate or interest in the land insured by this pOlicy, a policy of
<br />title insurance without exception for the lien, encumbrance,
<br />adverse claim or defect, said policy to be in an amount equal
<br />to the current value of the property or, if a mortgagee pOlicy,
<br />the amount of the loan; (4) indemnify another title insurance
<br />company in connection with its issuance of a pOlicy(ies) of
<br />title insurance without exception for the lien, encumbrance,
<br />adverse claim or defect; (5) secure a release or other docu-
<br />ment discharging the lien, encumbrance, adverse claim or
<br />defect; or (6) undertake a combination of 1, through 5, herein,
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<br />(d) Whenever the Company shall have brought ,any ac-
<br />tion or interposed a defense as required or permitted by the
<br />provisions of this pOlicy, the Company may pursue any such
<br />litigation to final determination by a court of competent juris-
<br />diction and expressly reserves the right, in its sole discretion,
<br />to appeal from any adverse judgment or order,
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<br />(e) Whenever requested by the Company, such insured
<br />shall give the Company all reasonable aid in any such action
<br />or proceeding, in effecting settlement, securing evidence,
<br />obtaining witnesses, or prosecuting or defending sllch action
<br />or proceeding, and the Company shall reimburse such insured
<br />for any expense so incurred,
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<br />(f) Any action taken by the Company for the defense of
<br />the Insured or to establish the title as insured, or both, shall
<br />not be construed as an admission of liability, and the Com-
<br />pany shall not thereby be held to concede liability or waive
<br />any provision of this policy,
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<br />4. PAYMENT OF LOSS
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<br />(a) No claim shall arise or be maintainable under this
<br />policy for liability voluntarily assumed by the Insured in settling
<br />any claim or suit without written consent of the Company,
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<br />(b) All payments under this policy, except payments
<br />made for costs, attorney fees and expenses, shall reduce the
<br />amount of the insurance pro tanto; and the amount of this
<br />policy shall be reduced by any amount the Company may pay
<br />under any policy insuring the validity or priority of any lien
<br />excepted to herein or any instrument hereafter executed by
<br />the Insured which is a charge or lien on the land, and the
<br />amount so paid shall be deemed a payment to the Insured
<br />under this policy,
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<br />(c) The Company shall have the option to payor settle
<br />or compromise for or in the name of the Insured any claim
<br />insured against by this pOlicy, and such 'payment or tender of
<br />payment, together with all costs, attorney fees and expenses
<br />which the Company is obligated hereunder to pay, shall
<br />terminate all liability of the Company hereunder as to such
<br />claim, Further, the payment or tender of payment of the full
<br />amount of this policy by the Company shall terminate all
<br />liability of the Company under this policy.
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<br />(d) Whenever the Company shall have settled a claim
<br />under this policy, all right of subrogation shall vest in the
<br />Company unaffected by any act of the Insured, and it shall be
<br />subrogated to and be entitled to all rights and remedies of the
<br />Insured against any person or property in respect to such
<br />claim. The Insured, if requested by the Company, shall trans-
<br />fer to the Company all rights and remedies against any
<br />person or property necessary in order to perfect such right of
<br />subrogation, and shall perl11it the Company to use the name
<br />of the Insured in any transaction or litigation involving such
<br />rights or remedies.
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<br />5. POLICY ENTIRE CONTRACT
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<br />Any action, actions or rights of action that the Insured may
<br />have, or may bring, against the Company, arising out of the
<br />status of the title insured hereunder, must be based on the
<br />proviSions of this pOlicy, and all notices required to be given
<br />the Company, and any statement in writing required to be
<br />furnished the Company, shall be addressed to it at its
<br />Principal Office, Claims Department, 6300 Wilshire Boulevard,
<br />P,O, Box 92792, Los Angeles, California 90009.
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<br />6. THIS POLICY IS NOT TRANSFERABLE
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<br />7. COMPLAINT NOTICE
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<br />Should any dispute arise about your premium or about a
<br />claim that you have filed, contact the agent or write to the
<br />company that issued the policy, If the problem is not resolved,
<br />you may also write the State Board of Insurance, Department
<br />C, 1110 San Jacinto Blvd" Austin, Texas 78786, This notice
<br />of complaint procedure is for information only and does not
<br />become a part or condition of this policy,
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